Square, the payments platform pioneered by Twitter CEO and Bitcoin evangelist Jack Dorsey, has purchased $50 million worth of bitcoin as part of its new investment strategy.
Amounting to precisely 4,709 bitcoin, the purchase represents an aggregate 1% of the firm's total assets.
"Square believes that cryptocurrency is an instrument of economic empowerment and provides a way for the world to participate in a global monetary system, which aligns with the company’s purpose," the firm said in a statement released earlier today.
Square CFO Amrita Ahuja validated adding Bitcoin to Square's balance sheet, arguing that it has the potential to be a ubiquitous currency in the future.
"For a company that is building products based on a more inclusive future, this investment is a step on that journey," Ahuja added.
Indeed, this isn't Square's first foray into the crypto fray. In March 2019, the firm launched Square Crypto, intending to accelerate the development of the Bitcoin network. Square has also offered bitcoin purchases via its payments processor CashApp since April 2018.
The firm's Bitcoin play follows in the footsteps of business intelligence firm MicroStrategy, which swapped out approximately $425 million for a total of 38,250 BTC within two separate purchases in August and September. Since making the switch, MicroStrategy CEO Michael Saylor has unremittingly lauded Bitcoin and its potential as a hedge against inflation and other such macro risks. Today, Saylor took the opportunity to congratulate Square's decision.
After MicroStrategy's initial purchase, some had questioned Jack on why Square didn't hold more Bitcoin. Jack responded that there were various ways to support the Bitcoin movement while outlining various Square initiatives. Blockstream CSO Samson Mow reminded Jack that Blockstream also supported those same initiatives in addition to keeping Bitcoin on their balance sheet.
The question on everyone's lips now is: Who's next?